The rising average age for cars and trucks will continue to drive increased sales for Clean Plus® distributors throughout the world. Clean Plus® is one of the best known vehicular care product conceptions of Falken Industries Ltd. |
Just take a look around you the next time you’re on the highway and you’ll be convinced and rush to your broker as I did, to put a couple thousand dollars to work in its shares (Falken is traded on the OTC under the symbol FLKI). Simply, there just isn’t the proportion of new cars out there that there used to be. The average age of cars in the U.S. has been rising and in fact reached a record 11.1 years as of June 30, 2011 – its better still in the rest of the world, better of course for purveyors of vehicular maintenance products such as Falken.
Light trucks, at 10.4 years, also reached their highest average age in at least a decade. This bodes all the better for Falken’s fastest growing line of products, its Clean Plus® “Pro” suited to supply detailing centers, Bodyshops, garages, and central motor pool maintenance both military and institutional. Falken’s high end products at an average price of 25-40% less than its competitors, makes it all the more attractive.
This trend of aging vehicles reflects a combination of increased reliability that allows vehicles to physically last longer, and an economic environment that forced some consumers to hold onto their vehicles longer and repair them rather than purchase a new vehicle. This aging of the global vehicle fleet bodes well for Falken’s future.
Quite evidently, the rising age of vehicles has a positive portent for future demand of Falken product conceptions. Consumers, who need to keep their cars, will want them to last and looking good as new, and Falken’s Clean Plus® product collection is world renown to accomplish just that, both at the consumer and professional levels. As the economy improves more business will feed into Falken’s distribution consumer and professional end-users.
But even without economic improvement, vehicles of all kinds will need to be maintained, degreased, protected and serviced, increasing volume for distributors of Falken’s product ranges.
The rising price of used vehicles due to a relative scarcity of newer used models, also underlines the positive prognosis for Falken sales and profits. Larger investments in the vehicle will increase the motivation for vehicular care.
On the consumer side, Falken’s Clean Plus® products, are a God sent for retailers because they increase the targeted market share from enthusiast, to the more pragmatic and reliable female market entirely neglected by Falken competitors. Not less than 57% of Clean Plus® consumer products are purchased by women. Today the company markets two consumer lines, a high end line, which has benefited from a number of awards for innovation, and its Bianci® “Classic” line which targets price sensitive markets.
Falken is easily poised to capture the relatively high margined professional vehicular care volume which will help it materially in increasing market share in 2012 and 2013.
John David is one of the nation's most respected expert analysts on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world's largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards. As a reliable partner FLKI creates chemistry to help distributors and retailers in virtually all industries to be more successful. With its high-value products and intelligent solutions, FLKI plays an important role in finding answers to global challenges such as environmental protection, energy efficiency, and mobility.
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